Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Since the commission
has adopted rules in chapter 480-75 WAC, Hazardous liquid,
gas, oil and petroleum pipeline companies -- Safety,
stakeholders and agency staff have identified a variety of
issues, and changes in the federal rules that suggest that the
commission should review certain rules relating to safety
operation of hazardous liquid pipelines. This rule making
proposes changes to WAC 480-75-300, 480-75-450, 480-75-630,
and 480-75-650 and to add a new rule ensuring that pipeline
operators comply with damage prevention requirements in
chapter 19.122 RCW.

Reasons Supporting Proposal: The proposed changes will
provide clarity in some areas of the rules, eliminate
requirements that are no longer necessary and provide
compliance with federal rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rules will not
result in or impose an increase in costs. Because there will
not be any increase in costs resulting from the proposed rule
changes, a small business economic impact statement is not
required under RCW 19.85.030(1).

A cost-benefit analysis is not required under RCW 34.05.328. The commission is not an agency to which RCW 34.05.328 applies. The proposed rule is not a significant
legislative rule as referenced in RCW 34.05.328(5).

December 6, 2006

Carole J. Washburn

Executive Secretary

OTS-9385.2

NEW SECTIONWAC 480-75-270
Damage prevention.
Each operator must
comply with the provisions of chapter 19.122 RCW, to the
extent those provisions apply to the operator. A failure to
comply with any of the provisions of chapter 19.122 RCW is a
violation of this rule. Each day a violation persists is a
separate violation of this rule. In determining whether an
operator has complied with the provisions of chapter 19.122 RCW, the definitions contained in that chapter will apply.
The definitions in chapter 480-75 WAC (other than the
definition of "operator") do not apply.

WAC 480-75-450
Construction specifications.
Operators
must assure that new pipeline construction ((must)) conforms
to the requirements of ASME B31.4. Information about the ASME
edition adopted and where to obtain it are set out in WAC 480-75-999, Adoption by reference. The longitudinal seams of
connecting pipe joints must be offset by at least two inches. In addition, the longitudinal seams must be located on the
upper half of the pipe when laid in the trench. ((Seamless
pipe is exempted from the requirements of the longitudinal
seam orientation.))

WAC 480-75-630
Incident reporting.
(1) Every company
must give prompt telephonic notice to the commission within
two hours of discovery of an incident such as a release of a
hazardous liquid resulting in:

(a) A fatality;

(b) Personal injury requiring hospitalization;

(c) Fire or explosion not intentionally set by the
operator;

(d) Spills of five gallons or more of product (((the
commission request voluntary compliance with 49 CFR, Part
195.50 (b). If the Washington state legislature adopts this
change, then notice of the five-gallon spill will be
mandatory)));

(((d))) (e) Damage to the property of the company and
others of a combined total cost exceeding twenty-five thousand
dollars (automobile collisions and other equipment accidents
not involving hazardous liquid or hazardous-liquid-handling
equipment need not be reported under this rule);

(((e))) (f) A significant occurrence in the judgment of
the company, even though it does not meet the criteria of (a)
through (((d))) (e) of this subsection;

(((f))) (g) The news media reports the occurrence, even
though it does not meet the criteria of (a) through (((e)))
(f) of this subsection.

(2) A written report must be sent to the commission
within one month of the incident. The report must include the
following:

(a) Name(s) and address(es) of any person or persons
injured or killed or whose property was damaged;

(b) The extent of injuries and damage;

(c) A description of the incident including date, time,
and place;

(d) A description and maximum operating pressure of the
hazardous liquid facilities implicated in the incident and the
system operating pressure at the time of the incident;

(e) The date and time the hazardous liquid facility
returns to safe operations; and

(f) The date, time, and type of any temporary or
permanent repair.

(3) An operator must give the commission telephonic
notification within twenty-four hours of emergency situations
including emergency shutdowns, material defects, or physical
damage that impairs the serviceability of the pipeline.

WAC 480-75-650
Annual reports.
(((1) The annual report
form No. 6 promulgated by the Federal Energy Regulatory
Commission (FERC) is hereby adopted for hazardous liquid
pipeline companies. At the close of each calendar year,
hazardous liquid pipeline companies must secure from the FERC
two copies of the annual report forms. The annual report must
be completed for the calendar year's operations. One
completed copy of the annual report must be submitted to the
commission no later than April 1 of the succeeding year. The
second completed copy must be retained by the company.

(2) For those companies not required to file form No. 6
the commission requires those companies to file annual report
form 224-225 prescribed by the commission. The annual report
will be mailed to each company by February 15 of each year.
Companies must submit an annual report to the commission no
later than April 1 of the succeeding year.)) Operators must
file the following annual reports with the commission no later
than April 1 for the preceding calendar year: